The $228 million plan is a 27 percent drop from the agency’s $312 million revised budget for the current fiscal year.

Even with the smaller budget, the commission still has one of the largest for a city department.

In past years, council members — led by Commissioner Randy Leonard — routinely battled with development commission executives over spending choices and transparency. Those conflicts led to a voter-approved change in city rules to give the council a formal vote on the commission’s budget. This time, Leonard had only praise for the commission’s leaders and the budget passed on a unanimous vote without controversy.

The development commission runs 11 urban renewal areas across the city. The agency’s revenue is primarily generated by property taxes paid on rising values in those 11 areas. Revenues are declining partly because three of those areas are expiring and two others are close to shutting down.

Later this year, the development commission is scheduled to propose a new downtown urban renewal. That area could target redevelopment around Portland State University’s campus, trucking company Con-way’s land near Northwest 23rd Avenue and the downtown shopping district.

The council today also dropped the city’s general fund contribution to the agency for economic development. The agency sought $6.3 million. After Mayor Sam Adams revised his spending plan, the council cut the figure to $3.5 million.